Tatua’s $10.50/kgMS tops, again!
Waikato-based milk processor Tatua has announced a final 2023-24 season payout of $10.50/kgMS for its farmer shareholders, again topping the payout stakes among NZ milk processors.
ASB has become the first bank to forecast a milk price above $9/kgMS for this season.
Senior economist Chris Tennent-Brown says the bank is lifting its forecast by 60c to $9.20/kgMS. The record milk price - $9.30/kgMS - was paid out in 2021-22 season.
He notes that rather than the downward sloping prices seen across the Global Dairy Trade (GDT) contract curve for whole milk powder prices at earlier events, they are now seeing the curve flatten, with average winning prices above US$3,500 MT over all contracts and WMP products, right through the key part of the season.
“Dairy prices are up significantly on year-ago levels, and we think Fonterra should have been able to already complete the bulk of this season’s USD hedging at a similar effective rate to last season’s US$0.6120. So we think Fonterra’s confidence to lift the milk price forecast range is well placed.
“In fact, we’re lifting our forecast for the season by 60c to $9.20/kgMS. It’d be great to see the previous $9.30 milk price record get broken, but we’ll wait to see a bit more of the season’s price action before calling that.”
He says how Fonterra can manage its product mix will be important, as well as the obvious importance of the trajectory for prices.
“We are not alone in expecting whole milk prices to trend lower at this time of the year, as they often do. But the opposite has been happening as Fonterra is hopefully capturing as much as possible of the very high prices in other products. There’s a balance of risks around any forecast, but at this juncture, we are comfortable to be picking a farmgate milk price in the top half of Fonterra’s forecast range, north of the $9 midpoint.”
Federated Farmers says it welcomes the announcement of extra Government support for farmers and growers in Southland and parts of Otago after the region was hit by severe wet weather.
ASB has become the first bank to forecast a milk price above $9/kgMS for this season.
The Meat Industry Association (MIA) and Beef + Lamb New Zealand (B+LNZ) say they welcome the announcement that the European Union’s Deforestation-free supply chains Regulation (EUDR) will be delayed by 12 months.
Waikato-based milk processor Tatua has announced a final 2023-24 season payout of $10.50/kgMS for its farmer shareholders, again topping the payout stakes among NZ milk processors.
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